Please answer all questions.
 |
1 | |
According to your book what percentage of all U.S. firms are classified as small businesses? |
| | A) | 25 |
| | B) | less than 50 |
| | C) | over 99 |
| | D) | 5 |
| | E) | less than 1 |
|
|
2 | |
Which of the following are common causes of small business failure? |
| | A) | high stress level |
| | B) | poor management |
| | C) | inability to cope with growth |
| | D) | undercapitalization |
| | E) | all of the above |
|
|
3 | |
One of the most significant strengths of small businesses is their ability to ______. |
| | A) | organize |
| | B) | innovate |
| | C) | raise funds |
| | D) | communicate |
| | E) | move |
|
|
4 | |
Which of the following is an advantage of small-business ownership? |
| | A) | ability to gain a solid reputation |
| | B) | flexibility in decision making |
| | C) | ability to focus on specific groups of customers |
| | D) | independence |
| | E) | all of the above |
|
|
5 | |
Since Brian Thomas decided to purchase the rights to own and operate a Baskin Robbins ice cream shop rather than start his own operation, he is |
| | A) | an entrepreneur. |
| | B) | a franchisee. |
| | C) | an industrialist. |
| | D) | a franchiser. |
| | E) | an employer. |
|
|
6 | |
Which of the following is not an advantage of small-business ownership? |
| | A) | lower cost of formation |
| | B) | increased flexibility |
| | C) | ability to focus |
| | D) | high failure rate |
| | E) | independence |
|
|
7 | |
Small businesses may obtain funding from their suppliers in the form of |
| | A) | a trade credit. |
| | B) | a bank loan. |
| | C) | a line of credit. |
| | D) | a mortgage. |
| | E) | venture capital. |
|
|
8 | |
One of the major reasons people want to own and operate their own business is to |
| | A) | have more free time. |
| | B) | have more structure in their work life. |
| | C) | have more freedom in choosing where and when to work. |
| | D) | make a lot of money. |
| | E) | remove stress from their lives. |
|
|
9 | |
Xerox, Apple Computer, and IBM have all done what in recent years to improve competitiveness? |
| | A) | gone public |
| | B) | hired new CEOs |
| | C) | moved headquarters to Canada |
| | D) | downsized |
| | E) | all of the above |
|
|
10 | |
Dell Computers and Procter & Gamble began as what type of organization? |
| | A) | limited partnerships |
| | B) | hybrid organizations |
| | C) | corporations |
| | D) | small businesses |
| | E) | cooperatives |
|
|
11 | |
Small firms can target their efforts toward a few key customers or on a precisely defined market niche. This advantage of small business is |
| | A) | focus. |
| | B) | flexibility. |
| | C) | reputation. |
| | D) | hierarchical organization. |
| | E) | standardization. |
|
|
12 | |
Worries about new equipment, expanding inventory, rent increases, competition, changing market conditions, and the like may contribute to |
| | A) | overcapitalization. |
| | B) | overoptimism. |
| | C) | lack of planning. |
| | D) | undercapitalization. |
| | E) | high stress level. |
|
|
13 | |
To start any business you must first have |
| | A) | a business plan. |
| | B) | an idea. |
| | C) | financial resources. |
| | D) | working capital. |
| | E) | all of the above. |
|
|
14 | |
Estimates of income, estimates of expenses, an explanation of the business, and an analysis of the competition are typically included in the |
| | A) | mission statement. |
| | B) | corporate charter. |
| | C) | business plan. |
| | D) | corporate statement. |
| | E) | balance sheet. |
|
|
15 | |
Some larger corporations have acted like small businesses from their inception with great success. Which airline is an example? |
| | A) | US Air |
| | B) | Southwest Airlines |
| | C) | Delta |
| | D) | Northwest Airlines |
| | E) | TWA |
|
|
16 | |
In order to be classified as a small business, the owner-managed business typically employs not more than |
| | A) | 10 people. |
| | B) | 50 people. |
| | C) | 500 people. |
| | D) | 250 people. |
| | E) | 1,500 people. |
|
|
17 | |
Retailers share which of the following characteristics? |
| | A) | They open their businesses in convenient locations. |
| | B) | They employ only a small number of people. |
| | C) | They sell from a single store location. |
| | D) | They sell small quantities of goods. |
| | E) | They sell directly to consumers. |
|
|
18 | |
Which of the following is not a disadvantage of small-business ownership? |
| | A) | flexibility |
| | B) | high stress level |
| | C) | high failure rate |
| | D) | undercapitalization |
| | E) | managerial inexperience |
|
|
19 | |
Retailing, services, and high technology are attractive to small business owners for which of the following reasons? |
| | A) | High initial capital investment requirements and ease of entry |
| | B) | Low initial capital investment requirements and difficulty of entry |
| | C) | Low initial capital investment requirements and ease of entry |
| | D) | High initial capital requirements and difficulty of entry |
| | E) | These industries are relatively unattractive to small business owners. |
|
2002 McGraw-Hill Higher Education